Dáil Éireann Debate, Tuesday - 18 December 2012
413. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources with regard to the proposed gas supply from Nenagh to Limerick, the process and timeline involved; if any trial holes been carried out to date along the old N7 roadway Nenagh to Limerick; if the energy regulator will make the final decision on such projects; and if he will make a statement on the matter. [56820/12]
View answerThe development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient.
The Commission for Energy Regulation (CER), which is a statutory, independent body, has, since 2002, been charged with all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no direct statutory function in relation to the connection of towns to the gas network.
The CER, in 2006, approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. This policy ensures that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. Otherwise uneconomic projects will increase costs for all energy consumers. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns.
Having regard to CER’s new network connections policy, Bord Gáis Networks, and more recently Gaslink, carried out a comprehensive assessment of 39 towns (including Nenagh) not already connected to the national gas network, with detailed economic analysis based on criteria outlined in the policy. The study was published in April 2010 following approval by the CER. The Gaslink report found that 35 towns, including Nenagh, did not qualify for connection on economic grounds.
Nevertheless, Gaslink continues to review the towns which did not qualify for connection under the study, and other towns, on an ongoing basis. I understand that Gaslink is currently reviewing the case for the connection of Nenagh to the national gas network and has very recently made a revised submission to the CER to assess the feasibility of the connection of the town. Following assessment by the CER, a decision will be made by the Regulator. Engineering works on the project can only commence on receipt of the relevant approval from the CER and any approval will be subject to Gaslink securing sufficient gas loads in the area. No trial holes have been carried out to date along the proposed pipeline route. Such works would be subject to receipt of the relevant approval from the CER.
